“It is not possible to renegotiate the fiscal pact,” government spokesman Steffen Seibert said during a news conference.
He noted that 25 of the 27 EU member states had already signed the accord imposing strict budgetary discipline in March after major wrangling.
Mr Hollande has called for a shift in strategy toward more growth-oriented measures including more public spending.
But Mr Seibert said Angela Merkel would not accept “deficit spending” to feed economic expansion, and believed in “growth through structural reforms” such as reducing the cost of job creation as pursued by Germany over the last decade.
This is not going to go over well; there’s a second call out this morning apparently as well from Germany that essentially says the same thing.
But just like in America no previous government in Europe can in point of fact bind the next one.
Oh sure, you can try, but it always fails — unless you intend to try to enforce that set of conditions with guns and bombs. We’re not going there are we?
We might (eventually) be.
Let’s hope not, but this much is certain — these are nations, not a King and his subjects. You can ask, you can negotiate, but if you slam the door you can expect that the entity you slam the door on will take an even crack at trapping your fingers in it as it closes.
This is going to get interesting over in Europe, and the instability is good for volatility — but not much else.